EnergyPathways to Tap MCS, Mermaid for Marram Field Project

Integrated energy transition firm EnergyPathways plc is looking to secure the services of MCS Subsea Solutions Limited and Mermaid Subsea Services (UK) Limited for its Marram field project in the United Kingdom (UK) Irish Sea.

EnergyPathways has signed a memorandum of understanding (MoU) with the two companies for subsea front end engineering design (FEED), project support, procurement and offshore construction services for Marram, which it owns and operates.

As part of the FEED engineering, project support, procurement and offshore construction services processes, the company has already contracted with MCS and Mermaid regarding initial work orders, the results of which will allow it to progress to defining the scope of the final contract, EnergyPathways said in an announcement on the London Stock Exchange Wednesday.

The Marram project is a short-cycle low-emission gas field that EnergyPathways is progressing towards a final investment decision. The project concept envisages a simple low-cost two-well subsea tieback development with first production targeted for 2025, the company said. The project, a gas development with 40 billion cubic feet of resources, has the “potential to generate compelling economics and returns for shareholders due to its low cost development environment, presence of nearby existing infrastructure and proximity to UK energy markets”, the company added.

The Marram Project represents the first UK Continental Shelf development project where MCS and Mermaid will collaborate from FEED to commissioning and deploy proven technology that can reduce development costs and delivery cycles, according to the announcement.

MCS and Mermaid specifically plan to access “fit for purpose” vessel solutions as well as to use their market position to secure global supply chain solutions for long-lead items. They also plan to deploy the use of a mechanical interference fit connection system for the submarine pipeline. Since the early 1990s more than 4,660 miles (7,500 kilometers) of the system has been installed and has been shown to save up to 40 percent in installation costs in shallow water relative to other approaches, the announcement said.

The Marram Project development plan will also facilitate the use of diverless connection systems for shallow water, thus reducing the risks associated with the use of divers for the pipeline tie-in operations, according to EnergyPathways.

"The signing of this MoU is an important step in ensuring the necessary subsea expertise and project support capabilities are in place to deliver the Marram Project utilizing cost-effective and timely project delivery solutions”, EnergyPathways CEO Ben Clube said. “The Marram Project will provide affordable and reliable low emission energy to the UK market, while offering security of energy supply and commercial returns to our investors”.

"Delivering on the UK Government's strategy of Maximizing Economic Recovery of offshore oil and gas reserves, while also ensuring an orderly transition to net zero, is core to Mermaid's business, and this MoU is further evidence of that”, Scott Cormack, Regional Director for Mermaid Subsea Services UK, said. “Marram is a low emission, high reward field, and we look forward to working with EnergyPathways and MCS to make this project a reality”.

According to the company’s website EnergyPathways’ medium-term focus is to innovate and integrate emerging technologies and existing energy systems with the undeveloped gas resources of the East Irish Sea. Potential energy solutions include gas-to-power, flexible power generation, gas storage, hydrogen production and integration with carbon capture and storage CCS of the region.

To contact the author, email rocky.teodoro@rigzone.com